Report: Jay-Z Near Closing $150 Million Deal with Live Nation

Authored by Mark Hefflinger on April 3, 2008 - 8:38am.

New York - Hip-hop artist and impresario Jay-Z is about to close a $150 million deal with concert promoter Live Nation (NYSE: LYV), that will see him leave longtime label Def Jam -- from which he stepped down as president last year -- and form a joint venture that will include recordings, tours, artist management and merchandise, The New York Times reported on Thursday. The deal follows Live Nation's announcement of a touring and merchandise deal with U2 on Monday, and the $120 million contract it signed with Madonna in 2007.

In addition to recording, Jay-Z sold his Rocawear clothing line last year for $204 million, and also co-owns the 40/40 chain of nightclubs.

As part of its proposed arrangement with Jay-Z, Live Nation would finance a new venture, Roc Nation, that would house outside projects including a label, music publishing, and talent consulting and managing -- and split profits with the rapper, The Times reports.

The deal would reportedly see Jay-Z receive an upfront payment of $25 million; a general advance of $25 million, which includes fees for his current Live Nation tour; and advance payments of $10 million an album for a minimum of three albums during the deal's 10-year term.

*Photo of Bill Gates and Jay-Z from Rocafella.com